Grandfathered commissions should be stopped but at the same time those that 'own' these income rights ought to be compensated in some way. Similar to water rights buy backs, tax licence rights buy backs etcRemember, they (commissions) were legal when initially sold, they never related to ongoing 'advice' when they were initially sold (this is a recent manifestation). Their legality was confirmed by FOFA when grandfathered and they are still legal now. Straw polling of M&A firms in the industry tells us that trailing commissions are worth 2.5 times or so. Perhaps this is what needs to be paid out by fund managers to the owners of the rights. We could then end grandfathering this year well before 2021? Most FMs should be able to find this, especially those that have already switched off and saving the commissions that were once directed into aligned salaried advice channels.
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